Call Centre Management

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Summary

This report is a critical analysis on the effectiveness of IVR (Interactive Voice Response) in a customer service perspective. The author will further discuss in detail on the uses, advantages, benefits, disadvantages and limitations supported with point-of views, concepts, references and theories.

 IVR is being commonly used by many companies that are highly active in their customer service sectors, from food delivery to telecommunications companies; IVR is one of the most important tools being used. IVR can be a useful and convenient tool to provide convenience for both the customers and the service provider. However, over reliance on IVR will also bring negative experience to both parties.

Overall, this report will analyse the topic on whether IVR is the secret to great customer service. The author views that the hypothesis mentioned above is untrue and will discuss it further in the report.

Table of Contents

Introduction        1

What is IVR?        1

Views on IVR        1

Communication channels        1

Uses, advantages and disadvantages of IVR        2

Benefits and advantages of IVR        2

Limitations and disadvantages of IVR        3

Conclusion        4

References/Appendix        5

Introduction

What is IVR?

It is an automated system that interacts with callers, gathers information and routes calls to the appropriate agent. This technology is commonly adopted by call centres worldwide. An IVR system can either be in a form of a combination of voice, a tone input via keypad and it provides the appropriate responses in the form of voice, email, call backs etc.

Views on IVR

There are a variety of studies and feedback obtained from customers pointing to the same conclusion: IVR technology is hated [1]. Countless of customers vent their frustration; mock the technology and often feedback that the systems are designed without much thought. A forum on TW Cables useless customer service [2] has many of the customers expressing their discontent with the IVR system that is implemented. Many finds it robotic hampered by repetitive rigid responses therefore deemed unhelpful and uneasy in providing solutions to issues faced by customers. The author has negative experiences when navigating through the IVR menu when she called in to the Singtel Hotline as the menu was too lengthy.

Communication channels

We live in a multichannel world whereby customers will use different channels and platforms to communicate to the service provider in order get their issues addressed. Different customer has different consumer behaviour in terms of engaging with the service provider. These choices of behaviour are determined by many factors e.g. demographics, socio-cultural factors etc.  Based on [appendix 3], it shows that 80% of customers prefer talking to an agent on the phone.  

The minority who remain acceptable to an automated phone system (IVR) is only at 10%.  The IVR system is known for its advantages and disadvantages [4].

Uses, advantages and disadvantages of IVR

From the perspective of a service provider, IVR brings great volume in reducing operational costs. It improves customer experience by providing a more convenient and efficient communication channel.

When a call centre implements IVR, they aim to reduce operational costs, improve customer experience thus making their operations efficient. IVR can be used to:

• handle high surge of calls [For details refer to Benefits and advantages of IVR]
• serve customers after normal business hours [For details refer to Benefits and advantages of  IVR]
• improve customer service
• lower operational costs of call centre
• prioritize calls based on customer’s rating or ranking
• automate an outbound call campaign

IVR has its advantages and disadvantages. Let’s review them.

 Benefits and advantages of IVR

Handling high call volumes - Calls are automatically directed to the agent or department that is most capable of meeting its objectives or be put in the queue when all agents are engaged. Some IVR systems allow callers an option to request for a callback.